RBC Insurance’s Disability Buy/Sell Plan

RBC has a plan to
cover your business
because of a disability.
Photo by Lee Chisholm

RBC Insurance offers a Disability Insurance Buy/Sell Plan that provides non-cancellable and conditionally renewable business protection for individuals in a partnership or corporation comprised of two or more partners or shareholders.

The Disability Buy/Sell Plan is designed to provide funding for the remaining insured partners or shareholders to purchase the business interest from the partner or shareholder who becomes disabled and cannot work. RBC's Disability Buy/Sell Plan offers coverage until the earliest occurrence of the following:

1. The insured partner's 64th birthday.

2. The date the insured partner is terminated from active full employment with the business entity for any reason other than total disability.

3. The date the aggregate benefit limit is paid.

4. The date one partner owns more than 90% of the business entity.

The premiums and provisions within the policy are fully guaranteed once the coverage is in place. The following is a sample quote for a 40-year-old male, non-smoker who qualifies for a 3A Occupation Class (commonly given to people in management-type positions):

There is an elimination period of 360 days and a benefit amount of $200,000 that is paid out in level, monthly instalments over a 60-month period. The premium would be $92.30 a month.

For more details on universal life insurance in Canada, please visit our Disability Insurance Quote Page, or contact us at 1-866-899-4849.

Posted by Chantal Marr.